Investment perspectives for financial markets in 2017

In 2017, improved global economic growth perspectives will be juxtaposed by the reduced expansionary dynamism of central banks and expensive asset valuations. Whilst the United States will continue to raise the Fed funds rate, in Europe the European Central Bank will progressively scale back its asset purchasing programme throughout the year, in an environment in which the valuations of bonds and equity will be “expensive”. In this environment, the investment scenario will be characterised by moderate returns and high volatility. Antonio Saiz, Customer Strategy Manager, explains the investment perspectives for financial markets in 2017.

Stock markets have continued to show declines in the last month, while fixed income and gold have acted as defensive assets. Good, but less dynamic confidence data, the political risks deriving from the protectionist policies that could trigger a trade war between the United States and China and, lastly, the normalisation of monetary policy by the principal central banks, are the main risks. Expensive valuations will lead to lower returns and greater volatility. Gabriel Noguera, from the Customer Strategy Department, presents the investment perspectives for April in this video. You can keep up to date with the latest financial markets news on the "Sabadell Inversor" website.

In the first weeks of February the stock markets have undergone a strong correction after the best start to the year in the last 25 years, which had led to investors becoming excessively optimistic. One of the reasons behind this correction is the abrupt rise in long-term interest rates, supported by solid and better-than-expected activity and inflation data, which is why investors have anticipated more aggressive rises in reference rates. As a result, the market is at better levels for a scenario of economic strength to play out, with contained inflation and rising rates. Federico Servetto, from the Customer Strategy Department, presents the investment perspectives for March in this video. You can keep up to date with the latest financial markets news on the "Sabadell Inversor" website.

In January, financial markets have continued in the same vein as 2017. While the appreciation of the euro has accelerated, stock markets have continued to show positive returns in contrast with the weakness of fixed income, thus contributing to global economic strength. In terms of regions, the euro zone particularly stands out, with economic data consistently beating expectations for almost 500 days. Given these positive data, the market expects the European Central Bank to open the door to ... Elena Serrano, of the Customer Strategy Division, presents in this video the investment outlooks for February 2018.To keep up to date with the latest information on financial markets please visit SabadellInversor.com

Equities continue to show a better performance than fixed income due to the solid data of global business confidence, especially in United States, where the business confidence has reached high levels, only reached5 times since 1975. In addition, the new fiscal reform proposal in the United States and the release of third-quarter business results will continue being a support for equity markets, as earnings are expected to continue surprising positively. However, central banks less dynamic in their monetary policies and asset valuations at expensive levels suggest to invest in ... Antonio Martos, Customer Strategy Division, presents in this video the investment perspectives for November. For updated information on financial markets please visit Sabadell Inversor.

Part of the political uncertainty which has been affecting Europe has been dispelled following the results of the first round of the French presidential elections. Opinion polls on the second round of elections, which will take place on May 7th, already place Macron, the leader of a pro-European party, as the next President of France. Equities perform better than fixed income in the current environment, with macro data, which continues to exceed expectations in Europe, providing support for the growth of corporate earnings for 2017, which is a welcome change after five years in which corporate earnings growth estimates have been gradually revised downwards. The discourse of the main central banks has changed towards a less expansionary approach, and this will progressively drive long-term interest rates upwards and will have a similar effect on zero and negative rates of return on European fixed income. Elena Serrano, of the Customer Strategy Division, explains the investment outlook for financial markets in May. For updated information on financial markets please visit our website: Sabadellinversor.com